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Metro Area Unemployment & Employment – November 2014

The Bureau of Labor Statistics released new data on metro area unemployment and employment yesterday.  The report noted that unemployment rates in November were down compared to the previous year in 341 of the 372 metropolitan areas in the nation.  The eight metro areas that contain portions of Arkansas were all included in that total.  Not-seasonally adjusted unemployment rates declined by more than a full percentage in each of the state’s metro areas over the past 12 months, with the largest decline being a 2.7 percent drop in Pine Bluff.

In the recent statewide unemployment report, Arkansas’ unemployment rate dropped by three-tenths of a percent in November (seasonally adjusted).  Comparable figures for the state’s metro areas do not uniformly reflect this dramatic decline.  From October to November, data from the Smoothed Seasonally Adjusted Metropolitan Area Estimates show declines of only one-tenth in Fort Smith, Hot Springs, Jonesboro and Memphis.  Texarkana was down two-tenths and Pine Bluff was down three-tenths.  Unemployment rates in Fayetteville and Little Rock were unchanged.  Although the magnitude of unemployment rate declines were smaller for most metro areas than the statewide average, the underlying components were all generally encouraging.  The number of unemployed was down in all eight metro areas, and the number of employed was higher in all except Memphis.

Source:  Bureau of Labor Statistics
Source: Bureau of Labor Statistics

Payroll Employment
Nonfarm payroll employment increased by 0.5% statewide in November, but the gains were not reflected evenly across the state’s metro areas.  In a fact, payroll employment was down in both Hot Springs, Memphis and Pine Bluff.  Employment in Texarkana was unchanged and Little Rock saw only a slight increase.  Compared to a year ago, employment has declined in Fort Smith and Pine Bluff, but has increased in the state’s other metro areas.  Only Jonesboro has surpassed the nationwide growth rate of 2.0%.  In fact, at 2.9%, Jonesboro is the only metro area in the state to be growing faster than the statewide average of 1.5%.  Compared to pre-recession levels of seven years go, employment has increased in Fayetteville and Jonesboro, but is still lagging behind in most other metro areas.

Source:  Bureau of Labor Statistics
Source: Bureau of Labor Statistics

Arkansas Employment and Unemployment – September 2014

Latest data from the Arkansas Department of Workforce Services and the U.S. Bureau of Labor Statistics showed the Arkansas unemployment rate ticking down to 6.2% in September, down from 6.3% in August (seasonally adjusted).  The number of unemployed in the household survey declined by about 850, while the number employed increased by more than 4,500.  As a result, the size of the labor force was up by 3,700.  Both employment and labor force participation had been sliding downward since March of this year.  September’s upticks suggest that the downward trends have subsided.

Source:  Bureau of Labor Statistics, Local Area Unemployment Statistics (LAUS)
Source: Bureau of Labor Statistics, Local Area Unemployment Statistics (LAUS)

Payroll Employment
Nonfarm payroll employment increased by 2,900 in September, following a revised increase of 800 in August (seasaonally adjusted).  The not-seasonally adjusted data released by the Arkansas Department of Workforce Services showed a monthly increase of over 15,200.  However, that increase was entirely attributable to the start of the school year.  State and local government employment was up 13,100 (reflecting employment public schools, colleges and universities), while employment in Educational services was up 2,100 (reflecting employment at private schools).  The seasonally adjusted data (shown in the table below) revealed a strong gain in Professional & Business Services (+2,300).  Construction emp0loyment was up slightly (+800) while manufacturing employment declined a bit (-700).

Source:  Bureau of Labor Statistics, Current Employment Statistics (CES)
Source: Bureau of Labor Statistics, Current Employment Statistics (CES)

Overall, the current statistics show an employment increase of 43,400 since the trough of February 2010, leaving the state down by only 13,600 jobs relative to pre-recession levels.  However, the data for the past 18 months is subject to annual benchmark revisions that will ultimately be published in March 2015.  As is the tradition here at the Arkansas Economist, we’ve taken a look at the underlying detailed data in order to anticipate the nature of the visions — an exercise we’ve called “forecasting a revision of history.”

At the Little Rock Regional Economic Briefing last week, we presented the most recent version of the forecasted revision of history.  Using data from the Quarterly Census of Employment and Wages (QCEW) through March 2014, the next round of revisions to nonfarm payroll employment are expected to show a downward adjustment of approximately 9,400 jobs.  As shown in the figure below, the revisions will primarily effect the spurt of job growth that show up in the current data for the second half of 2014.  After applying the expected revisions to the newly-released statistics, the totals in the table above would be modified to show a net gain of only 34,000 jobs since February 2010, leaving total employment 23,000 below pre-recession levels.

Sources:  Bureau of Labor Statistics (CES, QCEW), and author's calculations.
Sources: Bureau of Labor Statistics (CES, QCEW), and author’s calculations.

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*Seasonally adjusted data for Arkansas nonfarm payroll employment, reported in a format compatible with the monthly news release from the Arkansas Department of Workforce Services, can be found here:  Table-Seasonally Adjusted NFPE.

Arkansas Home Sales – August 2014

The Arkansas Realtors® Association announced this morning that home sales in August were down 3.4% from a year earlier.  This was the first year-over-year decline since last November, but that shouldn’t come as a surprise.  The summer months of June, July, and August are typically the peak months of the year, but the peak can come in either July or August, depending on the number of closings that take place before or after Aug 1.  In 2013, the peak month was August, whereas this year the highest-sales month turned out to be July.  Comparing this year’s July/August total with last year’s, we see an increase of 3.4%.  Year-to-date, home sales are up 5.1% over last year.

ARA_0814_NSA

After seasonal adjustment, it is clear that while the August sales figure represents a slight down-tick from the previous month, it provides little evidence of any change in the upward trend of home sales over the past two years.

Source:  Arkansas Realtors® Association; Seasonally adjusted by the Institute for Economic Advancement
Source: Arkansas Realtors® Association; Seasonally adjusted by the Institute for Economic Advancement

Metro Area Unemployment & Employment – August 2014

This morning, the Bureau of Labor Statistics (BLS) released new information on unemployment and employment in metropolitan areas.  The BLS News Release reported that unemployment rates were down from a year earlier in 322 of the nations 372 metropolitan areas.  All eight of Arkansas’ metro areas were included in that total, with the year-over-year declines ranging from 0.9% in Fayetteville to 1.8% in Pine Bluff.

The not-seasonally adjusted data show that the unemployment fell rather sharply from July to August, but that is a typical seasonal effect.  (For example, over the past 10 years, the not-seasonally adjusted unemployment rate for Arkansas has, on average fallen by 0.57% between July and August, while the seasonally adjusted average was +0.03% for the same monthly change.)  Data from the Smoothed Seasonally Adjusted Metropolitan Area Estimates show that there was little change in metro-area unemployment rates after taking account of the usual seasonal swing:  Unemployment rates declined by one-tenth of a percentage point in Fort Smith and Pine Bluff, increased by one-tenth in Memphis, and were unchanged in the remaining metro areas.

Source:  Bureau of Labor Statistics
Source: Bureau of Labor Statistics

Over the past several months, we have noted a sharp decline in labor force participation in Arkansas.  In the report on statewide unemployment in August, we saw a slowdown of that trend.  As shown in the figure below, most of the state’s metro areas have shown a similar downward trend in the size of their labor forces since March 2014.  The weakening of the downward trend is also evident in most of the state’s metro areas (with the notable exception of Memphis).

There is no clear explanation of why we have seen such a sharp downward trend since spring.   One pattern that appears to generally hold in the figure below is the relationship between cumulative labor force contractions and the more recent weakening of the downward trend.  In particular, the metro areas that have experienced the largest cumulative reductions in labor force participation during 2013 and 2014 continue to trend downward.   The weakening of the downward trend is more apparent in metro areas that have only recently been subject to a declining labor force.  In fact, the labor force in Jonesboro — where cumulative increases over the past two years have been the largest — edged slightly higher in August.

Source:  Bureau of Labor Statistics (Smoothed Seasonally Adjusted Metropolitan Area Estimates)
Source: Bureau of Labor Statistics (Smoothed Seasonally Adjusted Metropolitan Area Estimates)

Payroll Employment
Statewide payroll employment growth was essentially zero in August, with metropolitan areas showing a wide range of changes.  From July to August, employment was down in four metro areas (Little Rock, Memphis, Pine Bluff and Jonesboro) and was up in the remaining four (Fayetteville, Texarkana, Fort Smith and Hot Springs).   Over the past year, only Pine Bluff has seen a net reduction in payroll employment (-1.4%), with increases in other metro areas ranging from +0.5% in Fort Smith to +1.9% in Jonesboro.  Compared to pre-recession employment levels, only Jonesboro and Fayetteville have seen net increases.

Source:  Bureau of Labor Statistics
Source: Bureau of Labor Statistics

 

Metro Area Unemployment and Employment – July 2014

Unemployment rates continued to trend downward in most of Arkansas’ metro areas in July.  However, as with the statewide data, unemployment rates are falling against a backdrop of sharp declines in the labor force.

The typical summer spike in unemployment continued to drive month-to-month changes in the not seasonally adjusted data.  Compared to the July 2013, however, unemployment rates were down by more than a full percentage point for all metro areas except Memphis.  The largest year-over-year declines were in Fort Smith, Jonesboro, and Pine Bluff, all showing declines of 1.7 percentage points.

Adjusting for the predictable summer effect, data from the Smoothed Seasonally Adjusted Metropolitan Area Estimates showed unemployment rates generally falling from June to July.  Rates declined by 0.1 percentage pointes in Fayetteville, Hot Springs and Little Rock; and were down 0.2 percentage points in Jonesboro and Pine Bluff.  Rates in Fort Smith and Texarkana held steady, while the rate in Memphis increased by 0.3 percentage points.

Source:  Bureau of Labor Statistics
Source: Bureau of Labor Statistics

In the context of the statewide unemployment report, we have noted that the number of employed and the civilian labor force has been declining sharply this summer.   Over the past four months, employment has fallen by 21,632 (-1.7%) and the labor force has contracted by 32,374 (-2.4%).  As shown in the table below, the declines are also reflected in most of the state’s metro areas.  The largest percentage declines are in Fort Smith and Hot Springs.

Source:  Bureau of Labor Statistics
Source: Bureau of Labor Statistics

Payroll Employment
Monthly changes in payroll employment were mixed across Arkansas MSAs.  Employment declined in Pine Bluff, Texarkana and Fort Smith.   Small increases were reported in the state’s remaining metro areas.  The declines in Fort Smith and Pine Bluff represent continued weakness:  Employment is down from a year ago in both of those metro areas.  Compared to pre-recession employment levels, Fayetteville and Jonesboro remain the only metro areas in the state that have seen positive net job growth.

Source:  Bureau of Labor Statistics
Source: Bureau of Labor Statistics

Metro Area Employment & Unemployment – June 2014

New statistics on employment and unemployment in Arkansas’ metro areas shows continuing declines in unemployment rates.  However, concerns about statewide labor force participation are also apparent in the metro area data.   As shown in the table below, not-seasonally adjusted unemployment rates have fallen sharply over the past 12 months.  The declines range from -1.2% in Fayetteville, Little Rock and Texarkana to -1.9% in Pine Bluff.  The most recent monthly changes show slight upticks.  However, the change in unemployment from May to June is subject to predictable seasonal increases.  After adjusting for recurring seasonal effects, the seasonally adjusted data show that the unemployment rate declined in June for every metro area except Memphis.

Source:  Bureau of Labor Statistics
Source: Bureau of Labor Statistics

In the statewide data for June, we noted that the unemployment rate was declining against a backdrop of a declining labor force — particularly over the past three months.  As shown in the following chart, the declining labor force from March through June is distinctive for most of the state’s metro areas as well.  Over the past three months, we see sharp labor force participation falling in every metro area except Memphis.  In some cases (Little Rock, Fort Smith, and Pine Bluff), the downward trend has been ongoing throughout 2014.  Relative to January 2013, the only metro area that has experienced a net increase in its labor force is Jonesboro.

Source:  Bureau of Labor Statistics
Source: Bureau of Labor Statistics

Payroll Data
Information from the survey of employers shows one-month declines in employment for five of Arkansas’ metro areas.  Compared to a year ago, however, only Fort Smith has seen a decrease.  Although net employment has been increasing since February 2010, the cumulative percentage increase for the state has only been 3.1%, and employment in Fort Smith, Pine Bluff and Texarkana has declined, on net, over that period.  Compared to pre-recession employment levels, only Fayetteville and Jonesboro have moved into positive territory.

Source:  Bureau of Labor Statistics
Source: Bureau of Labor Statistics

Metro Area Unemployment and Employment – May 2014

Unemployment rates in Arkansas’ metro areas continue to trend downward.  For the period from May 2013 through May 2014, not-seasonally adjusted data from the Bureau of Labor Statistics show declines ranging from 0.9 percentage points in Fayetteville and Little Rock to 1.7 percentage points in Memphis.  Statewide, the unemployment rate has fallen 1.1 percentage points over the past 12 months.

Source:  Bureau of Labor Statistics
Source: Bureau of Labor Statistics

On a month-to-month basis, the not seasonally adjusted data indicate that unemployment rates moved higher in May.   However, this is a typical seasonal effect.  Unemployment rates usually rise in the early to mid-summer — in part due to effects related to the end of the school year.   After adjusting for these recurring seasonal patterns, unemployment rates declined in May for all eight of Arkansas’ metro areas.  The Smoothed Seasonally Adjusted Metropolitan Area Estimates show declines of 0.2 percentage points in Jonesboro, Pine Bluff and Texarkana; and declines of 0.1 percentage points in the other five metro areas.  A graph of the smoothed seasonally-adjusted estimates (below) illustrates the downward trend that has prevailed across all of Arkansas’ metro areas since late last summer.

Source: Bureau of Labor Statistics
Source: Bureau of Labor Statistics

Payroll Employment
In the other half of the metropolitan area report, payroll employment continued to be disappointingly weak across the state.  Total employment was down in six of the eight metro areas, with small increases in Fayetteville and Memphis.  Compared to a year ago, employment is higher in all metro areas except Texarkana — but the gains are relatively small.  Year-over-year employment growth has been positive but less than one percent in Fort Smith, Memphis and Pine Bluff.  Payroll employment is still lower than its pre-recession peak an all metro areas except Fayetteville and Jonesboro.

Source:  Bureau of Labor Statistics
Source: Bureau of Labor Statistics

Metro Area Unemployment & Employment – April 2014

The national and state unemployment reports for April had shown a distinctive combination of statistics:  relatively large declines in unemployment rates, accompanied by sharp drop-offs in labor force participation.  Data for Arkansas metro areas released this morning show the same pattern.

Compared to a year ago, unemployment rates have dropped significantly.  The not-seasonally adjusted data in the table below show declines ranging from 0.8% in Fayetteville and Little Rock to 1.9% in Memphis.  According to this morning’s news release, Arkansas’ metro areas were among the 357 of 372 metro areas nationwide that experienced declining unemployment rates over the past 12 months.

Source:  Bureau of Labor Statistics, Local Area Employment Statistics (LAUS)
Source: Bureau of Labor Statistics, Local Area Employment Statistics (LAUS)

As was true for the state and national data, monthly changes in the unemployment rate were uncharacteristically large.  According to the smoothed seasonally adjusted data shown below, unemployment rates dropped by as much as 0.4% in Memphis and Pine Bluff.

Source:  Bureau of Labor Statistics, Smoothed Seasonally Adjusted Metropolitan Area Estimates
Source: Bureau of Labor Statistics, Smoothed Seasonally Adjusted Metropolitan Area Estimates

But the April declines in unemployment rates are not unambiguously positive news.  As was the case with the state and national data, the changes in metro area unemployment rates were driven by declining labor force participation.  The smoothed-seasonally adjusted data show labor force declines in April ranged from 0.3% in Memphis to 0.8% in Fort Smith.  The concern is that the unemployment rate is not falling because more unemployed are finding jobs, but because more unemployed are becoming discouraged and leaving the labor force (or the state).

Source:  Bureau of Labor Statistics, Smoothed Seasonally Adjusted Metropolitan Area Estimates
Source: Bureau of Labor Statistics, Smoothed Seasonally Adjusted Metropolitan Area Estimates

Payroll Employment
The data from the separate survey of employers does little to assuage concerns about the employment statistics from the household survey.  Monthly changes in nonfarm payrolls were mixed around the state:  employment declined in Fort Smith, Memphis and Pine Bluff, but increased in the state’s other metro areas.  Nevertheless, year-over-year gains have generally been modest.  Jonesboro and Fayetteville have seen sizable gains in employment over the past 12 months, but gains in the state’s other metro areas have been relatively small.  Employment in Pine Bluff continues to decline.  Compared to pre-recession employment levels, only Fayetteville and Jonesboro have surpassed previous peaks.

Source:  Bureau of Labor Statistics, Current Employment Statistics (CES)
Source: Bureau of Labor Statistics, Current Employment Statistics (CES)

The April employment statistics represent just one monthly observation.  Recent employment reports have painted a picture of improving labor market conditions–with unemployment falling and labor force participation rising.  The April data broke from these patterns, but it is too soon to say whether this represents a weakening of previous trends or simply a one-month anomaly.

Metro Area Unemployment & Employment – March 2014

Unemployment rates were lower in March than a year earlier in all of Arkansas’ metropolitan areas.  With the annual revisions now complete, estimates of metro unemployment rates for late 2012 and early 2013 are now generally reported to be 0.3 to 0.5 percentage points higher than previously published.  Consequently, the newly-published unemployment rates are, in some cases, not much lower than the rates initially reported a year ago.  But with the revised statistics, year-over-year declines in unemployment range from 0.3% in Fayetteville to 1.2% in Fort Smith and Memphis.  Over the same period, the statewide unemployment rate declined by 0.5%.

Source: Bureau of Labor Statistics, Local Area Unemployment Statistics (LAUS)
Source: Bureau of Labor Statistics, Local Area Unemployment Statistics (LAUS)

Smoothed seasonally adjusted estimates for March show monthly declines in seven of eight metro areas in Arkansas, with Fayetteville’s rate unchanged from February to March.  The largest monthly declines were in Hot Springs and Texarkana.

Source: Bureau of Labor Statistics, Smoothed Seasonally Adjusted Metropolitan Area Estimates
Source: Bureau of Labor Statistics, Smoothed Seasonally Adjusted Metropolitan Area Estimates

The figure below shows time-series for the smoothed seasonally-adjusted estimates.  Unemployment rates have declined substantially in all of Arkansas’ metro areas over the past 3 to 6 months.  The largest declines were generally in metro areas with the highest unemployment rates.  Since September 2013, rates in Memphis, Hot Springs and Fort Smith declined by a full percentage point or more.  As of March, all metro areas except Memphis and Pine Bluff had unemployment rates below 7%.

Source:  Bureau of Labor Statistics, Smoothed Seasonally Adjusted Metropolitan Area Estimates
Source: Bureau of Labor Statistics, Smoothed Seasonally Adjusted Metropolitan Area Estimates

Payroll Employment
Nonfarm payroll employment increased in four of eight Arkansas metro areas in March.  Employment declined for the month in Fayetteville, Fort Smith, and Hot Springs, and was unchanged in Pine Bluff.  The largest gain was in Texarkana, where a 1.5% increase offset losses from the previous 11 months.  Compared to a year ago, employment was up in six metro areas, with the largest increase in Jonesboro (+3.5%).  Compared to pre-recession levels, employment is higher in only two metro areas:  Fayetteville and Jonesboro.  Statewide, employment remains 1.5% below its level in December 2007.

Source:  Bureau of Labor Statistics, Current Employment Statistics
Source: Bureau of Labor Statistics, Current Employment Statistics

Arkansas Employment and Unemployment – March 2014

The unemployment rate in Arkansas dropped 2-tenths of 1 percent in March, falling to 6.9%. Today’s reports from the Bureau of Labor Statistics and the Department of Workforce Services represented the seventh consecutive month in which the number of the state’s unemployed declined and the number employed increased.  Since August of last year, the number of unemployed has fallen by over 10,000 and the number of employed has increased by 16,000.  With the unemployment rate below 7% for the first time since January 2009, the unemployment rate is now only 2-tenths of a percent higher than the nationwide average.

Source:  Bureau of Labor Statistics
Source: Bureau of Labor Statistics

Payroll Employment
February payroll employment totals were revised downward by 2,200, but the March figures were up 1,200 from the revised level.  Since August 2013, payroll employment has increased by 17,000.  As shown in the table below, employment increased in every non-government service sector in March.  In the not-seasonally adjusted data reported by the Department of Workforce services, construction and manufacturing were also up for the month, but those gains were attributable to typical spring rebound effects.

Source:  Bureau of Labor Statistics
Source: Bureau of Labor Statistics

Compared to a year ago, payroll employment is up 12,900, with increases in nearly every sector.  Total employment remains 17,800 below pre-recession levels.

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*Seasonally adjusted data for Arkansas nonfarm payroll employment, reported in a format compatible with the monthly news release from the Arkansas Department of Workforce Services, can be found here:  Table-Seasonally Adjusted NFPE.